Interview with Valvoline CHRO Jon Caldwell

Summary   Hiring and Retention Strategies at Valvoline Michael and Jon discussed the challenges and strategies of hiring and retention in various organizations. Jon shared about the recent transition of their company, Valvoline, from a product business to a retailer, and emphasized the importance of their unique culture in enabling their success. They mentioned that almost all of their management team started as technicians, fostering a growth mindset and that they place a strong emphasis on development and community service. Jon was open to discussing other potential topics. Brand Transformation and Customer Service Michael and Jon had a discussion about the transformative power of a brand, specifically focusing on the automotive sector. Michael shared their personal connection to the brand and expressed admiration for their customer service approach. They emphasized the importance of promoting from within and the positive impact it has on employee morale and customer experience. The conversation concluded with them deciding to start recording their discussion and encouraging each other to guide the conversation as needed. Jon's Professional Journey at Valvoline Michael and Jon had a conversation about Jon's professional journey. Jon, who is the Chief People Officer at Valvoline, has been with the company for about seven years and has held their current role for four years. They shared their professional experience, which includes a 14-year tenure at Fifth Third Bank where they held various HR roles. Jon highlighted the unique challenges and rewards of their career, emphasizing the variety of their roles and the satisfaction of driving and enabling business performance. Additionally, Michael shared their personal connection with Fifth Third Bank. Navigating Covid-19: Teamwork and Guiding Principles Michael and Jon discussed the challenges they faced when Covid-19 hit and how they navigated through it. Jon, who took on a new role in March 2020, emphasized the importance of teamwork and shared that they adhered to certain guiding principles. Their primary focus was to ensure the safety of their employees and guests, and they followed the CDC's guidance. They also adopted a conservative approach, cutting down discretionary spending and increasing communication within the team. Customer-Centric Services in Pandemic: Success Stories Jon shared that their organization had a successful year in 2020 and 2021, being deemed essential and able to maintain focus on their guests and team. Michael emphasized the importance of maintaining customer-centric services within the guidelines of the CDC, ensuring the safety of both their team and customers during the pandemic. They noted the appreciation from customers for the sense of normalcy their services provided, especially in the early days of the pandemic when many other services were limited. Employee Importance and Strategic Alternatives Michael and Jon discussed the importance of their organization's employees during challenging times, including the pandemic. Jon emphasized the crucial role of their employees, whom they refer to as "family," in maintaining operations and serving customers. Michael highlighted the organization's ability to adapt and provide a sense of normalcy during the pandemic. The conversation concluded with Jon announcing their intent to pursue strategic alternatives and separate their business in September 2021. Company's Retail and Product Segments Sold Jon discusses the company's two distinct segments, the retail side of the business, which operates under the brand Valvoline Instant Oil Change, and the product side, which sells base oil, additives, and other products. They have about 1,800 stores across the US and Canada. The company sold its product side to Ramco, a Saudi-owned company that will invest in its growth across the globe. They believe they can grow their retail business to 3,000-5,500 stores over the next five years. Navigating Change: Selling Product Business to Ramco Jon discussed the challenges faced during a 18-month period of significant change, highlighting the importance of effective communication to mitigate uncertainty. They shared that they had put in place programs to support employees and reassure them about their future roles financially. Once the decision to sell the product business to Ramco was made, they were able to fortify leadership structures for both organizations. The guiding principle was to set up both organizations for success by equitably dividing leaders and talent. Jon also mentioned that the move created promotional opportunities and new roles, and established two separate HR, finance, and IT teams. Leadership, Communication, and Culture in Uncertainty Jon and Michael discussed the importance of strong leadership during periods of uncertainty, such as organizational changes. Jon emphasized the role of clear communication and the reassurance it provides to employees. They also highlighted the significance of maintaining a healthy culture and treating people well, which helps navigate such transitions effectively. Michael pointed out that handling these situations can impact the value of a company, suggesting that a thoughtful approach can prevent potential damage. The conversation concluded with Michael expressing admiration for Jon's leadership style and the successful management of the transition. Vehicle Maintenance and Networking Discussion Jon, the representative from invited Michael's listeners to visit one of their 1,800 service centers across the US and Canada. They also encouraged them to connect with them on LinkedIn. Michael, who grew up in Detroit and has family ties to General Motors, emphasized the importance of checking and maintaining vehicle oil. They then thanked Jon for a pleasant conversation and wished them well. At the end of the discussion, Michael pledged to share the interview on their platform once it was live and to circulate it across their network. They also stressed the importance of transparency and communication within organizations to avoid unnecessary anxiety and second-guessing among employees.